Talking Stocks 2.0

[JParm]

Originally Posted by RyanO

I picked up some APHA a little while after you mentioned it. Today, after seeing the continued strength in the price action, I added to my position. Curious to see where this one goes. It’s moving up slowly after hours, too.


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I would drown out all the day to day noise on this - it's definitely a long-term hold. I think it's still a great price here, and as long as people balance it out with other value names in the portfolio, APHA can be the one MJ stock within a portfolio. Good balance sheet, profits achieved last quarter, etc.

[RyanO]

Originally Posted by jpeezy14@hotmail.com

I would drown out all the day to day noise on this - it's definitely a long-term hold. I think it's still a great price here, and as long as people balance it out with other value names in the portfolio, APHA can be the one MJ stock within a portfolio. Good balance sheet, profits achieved last quarter, etc.

I appreciate the heads up. It will be a long term hold for me.


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[cornerstore]

APHA Canadian pot stocks use a different accounting method than US producers.
Profits are not there. But hey don’t let reality get in the way of a good story.

From the Motley Fools

“For example, cannabis grower Aphria (NYSE:APHA) wound up reporting two consecutive quarterly profits in the fiscal fourth quarter of 2019 and fiscal first quarter of 2020. Including Aphria's pharmaceutical distribution operations, its total sales hit $126.1 million Canadian, with cost of goods sold of CA$98.6 million. This meant Aphria generated a gross profit of CA$27.6 million (when rounded) before factoring in operating expenses.

But before dropping down to operating expenses, Aphria has to deal with its fair-value adjustments. These accounting procedures require the company to estimate the value of their current crop (which can change based on the growth stage of cannabis plants), as well as estimate/adjust the cost to sell these goods. In many instances, this is done months before a company actually sells its pot products. In Q1 2020, the fair-value adjustment on the sale of inventory cost Aphria CA$7.3 million, but it received a CA$25.2 million above-the-line boost from the fair-value adjustment on growth of its biological assets.

Instead of reporting a gross profit of CA$27.6 million, Aphria was able to report a CA$45.4 million gross profit, after fair-value adjustments. This adjustment is wholly responsible for Aphria's two consecutive quarterly profits. Without it, the company would have reported an operating loss in both quarters.

[RyanO]

Motley Fool published this article yesterday, which conveys a slightly more positive tone:

https://www.fool.com/investing/2020/...ching-buy.aspx

[cornerstore]

Pot Companies in Canada ramp up production to create book value of unsold inventory to create paper gains. Many times the product is later written off as spoilage and shrinkage. It is a farming accounting method that Pot producers are exploiting. There are calls for changes in the regulations to preclude it in the future.

[kearez]

I left APHA a while a go, I went in and bought MO instead, i believe in the future they will capitalise on marijuana in the long run.

[scarlet knight]

Anyone into Pharma stocks? I own JNJ, RHHBY. Looking at LLY, ABBV.

[Duende01]

Baidu is considering delisting from Nadaq... Is this the first of many Chinese companies that will consider doing the same? I guess they are starting to contemplate how the added financial scrutiny of their balance sheets might affect their values in the future.

https://www.marketwatch.com/story/ba...ort-2020-05-21

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[logo]

Originally Posted by scarlet knight

Anyone into Pharma stocks? I own JNJ, RHHBY. Looking at LLY, ABBV.

I got into ABBV today. Total stink bid end of day that went through somehow.

[denmanproject]

Originally Posted by scarlet knight

Anyone into Pharma stocks? I own JNJ, RHHBY. Looking at LLY, ABBV.

Check out OBSV, I got in around just under $3 it’s been doing well lots of runway left

[scarlet knight]

Originally Posted by denmanproject

Check out OBSV, I got in around just under $3 it’s been doing well lots of runway left

That one seems smaller.

[beshannon]

Originally Posted by scarlet knight

Anyone into Pharma stocks? I own JNJ, RHHBY. Looking at LLY, ABBV.

Yes I own ABBV, PFE and GILD. ABBV is a long term holding for me

[Uggi]

Originally Posted by cornerstore

Pot Companies in Canada ramp up production to create book value of unsold inventory to create paper gains. Many times the product is later written off as spoilage and shrinkage. It is a farming accounting method that Pot producers are exploiting. There are calls for changes in the regulations to preclude it in the future.

That's really interesting. I made a fairly random punt (and I knew it was a punt) on ACB which paid off for me when it surged this week but this isn't a sector I'd invest in with any seriousness. I had read about companies having over-supply issues but didn't know about this accounting treatment. Too many unknowns here.
https://www.fool.com/investing/2020/...ing-today.aspx

[logo]

Bought a very small position in FL. Nice balance sheet, lots of cash on hand and decent online presence. They’re getting hammered a bit too hard following their earnings IMO, but long term I expect there will be an upside. Perhaps a slightly higher risk/reward investment. Today also suggests to me ULTA won’t have a great earnings report next week so I’m not buying there yet.

[Zack21]

Obviously this is just one insignificant data point but, I have recently purchased several pairs of shoes for my kids online through Foot Locker and the transaction was pretty seamless and I thought the costs including shipping were very reasonable so I hope they ultimately do well.

[cornerstore]

Originally Posted by cornerstore

As was suspected yesterday Moderna appears to have been overly optimistic at best with the news yesterday. How serendipitous for option holders, This is penny stock juicing tactics and the type of thing that destroys overall market confidence.

“On Monday, a trifecta of good news powered the Dow and S&P 500 Index to their best day in over a month. Yet stocks took a leg lower on Tuesday after a report late in the trading day questioned the significance of the data Moderna (MRNA provided.”

The stench gets stronger.
https://www.cnn.com/2020/05/22/inves...les/index.html

[Tha Baron]

Originally Posted by cornerstore

The stench gets stronger.
https://www.cnn.com/2020/05/22/inves...les/index.html

Doesn’t look good, but 10b5-1 plans exist for this very reason. Now the company has some leeway in their policies for these, but presumably these were put in place prior to this new information was released. I’m guessing the execs put these in place months ago.

You don’t work your whole life then hit a jackpot then go to jail... if it’s legal, good for them

[cornerstore]

Originally Posted by Tha Baron

Doesn’t look good, but 10b5-1 plans exist for this very reason. Now the company has some leeway in their policies for these, but presumably these were put in place prior to this new information was released. I’m guessing the execs put these in place months ago.

You don’t work your whole life then hit a jackpot then go to jail... if it’s legal, good for them

It’s the timing of several of the announcements not the option selling as such. What would the options be worth on that date without (the non peer reviewed) overly optimistic press releases leading up to the sales. In penny stocks that type of action is the pump and dump. Not a good look at best! Then again all that good news last week and Monday all could be just coincidence. Some investors are wondering.
https://www.globenewswire.com/news-r...-Inc-MRNA.html

[s2h904]

Far from a guru but I invested some coin in CCL, AAPL, MSFT, BA and HAL at the beginning of this month. Long term holds-not trying to day trade these into a new Platinum Day Date. Hope they pan out down the road...….

[beshannon]

Major risk on this morning Futures +500

More comment to come, need to get back into the day

https://www.thestreet.com/markets/5-...tuesday-052620

[JParm]

https://seekingalpha.com/news/357747...g-on-to-nasdaq

For those watching APHA (I'm long) / cannabis industry - APHA is making the move from the NYSE to the NASDAQ.

[bryan13]

Futures up over 2% on more hopes and dreams. Different day, same low volume futures pump bs.

[logo]

I’m not chasing anything today. Have my eye on a few things to add for long term positions in the coming days, but not on days like today. With the S&P crossing 3000, let’s see how well this holds.

[RyanO]

Originally Posted by jpeezy14@hotmail.com

https://seekingalpha.com/news/357747...g-on-to-nasdaq

For those watching APHA (I'm long) / cannabis industry - APHA is making the move from the NYSE to the NASDAQ.

Good to know, thanks. How much impact should that have in stock price I wonder?


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[JParm]

Originally Posted by RyanO

Good to know, thanks. How much impact should that have in stock price I wonder?


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From what I've read, fees are significantly lower on the NASDAQ, which is better for the bottom line. Volatility is higher on the NASDAQ as well.

[RyanO]

Good to know, thanks.

[beshannon]

Risk on across the board, prices are still getting toppy but markets can run past targets on both directions.I am not fighting the tape, will let the winners keep running and raise my stops accordingly.

[austinp]

Love raising the stops!


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[JParm]

I've been a bear on the airlines, but finally took a dip into LUV late last week.

I do think that they'll be a winner here due to the influx on domestic vs. international travel this year. For example, we've backed up our international trips scheduled for late 2020 with domestic travel to spots we wouldn't normally put on our itinerary. People are getting back to scheduling travel, so I think now is as good a time as any to start getting into the airlines.

Banks are cruising today as well.

[Uggi]

Originally Posted by Uggi

I opened a position in NCLH a few days ago and I'm looking hard at TUI.
I'm aware it will be a long haul investment but I think the returns will be good if I can justify tying up the cash.

Wow my NCLH position has skyrocketed today (that's the good news) but like an idiot I ignored my instincts on TUI from when I posted this last Friday. I listened to some bear sentiments I'd read elsewhere, got influenced and missed out on it and it has risen 60% today. Could have made a killing.
Two lessons in this:

1. Don't be distracted by noise
2. Be grateful for gains you have made rather those you've missed out on

Still hurts though.